AGENDA ITEM MEMORANDUM. Members, LLCC Board of Trustees. Charlotte J. Warren President. DATE: April 23, 2014

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1 AGENDA ITEM MEMORANDUM TO: FROM: SUBJECT: Members, LLCC Board of Trustees Charlotte J. Warren President Banking Services DATE: April 23, 2014 This past January the College invited banking institutions to submit a proposal to serve as the College s main depository over the next five years. Six institutions submitted a proposal, two of which did not meet our stated specifications. These two institutions were US Bank and First Bankers Trust Company. The remaining four, United Community Bank, Illinois National Bank, Bank of Springfield, and Town and Country Bank, met our stated specifications. Specifications for Required Banking Services The expectation when reviewing the proposals was that each institution would be able to furnish services that would at least meet our current services in regards to our four checking accounts and any service charges should be assessed first against any earnings credit. In addition the College required: a provision for providing checks, deposit slips, endorsement stamps, automatic redeposit of NSF checks, notification of all ledger debits and credits, currency and coin change orders, lock bags, international transfers, monthly bank statements and CD for all monthly bank statements, on-line banking services, cleared check file sent via no later than the fourth working day of the month, same day notification of wire transfers, daily courier services, provide an ATM on campus and provide remote capture terminals. We also require that the financial institution support direct deposit of payroll checks, ACH checks for vendor payments and establish correspondent banking services to support our service centers in Beardstown, Hillsboro, Jacksonville, Litchfield, and Taylorville. Each bank also had to meet or exceed two out of the three following ratings: A) A B rating based on the most current ratings from Weiss Ratings services B) 4 stars based on the most current ratings from Bauer Financial C) A bank stress index of B on the most current ratings from the Total Bank Solutions Bank Monitor Vertrees/Longhta/Patarozzi/Aherin

2 In addition to the basic services, the College asked for information and costs associated with specific banking services. We have attached a comparative annual cost summary and annual interest earnings summary for your review. Historically, the College has exercised a conservative fiscal policy which has ensured protection of the taxpayer s funds. Accordingly, the College asked each of the four financial institutions for assurance that the College s funds would be fully collateralized. Summary The College received four very competitive proposals. In addition to reviewing the proposals, the College met with each banking institution to review the proposals. The College greatly appreciated the efforts each institution took to provide us with a competitive proposal. All four proposals met our basic needs as well as identified additional services. Based on the analysis provided, we recommend that United Community Bank be designated as Lincoln Land Community College s depository for the next five fiscal years. United Community Bank is offering the lowest annual cost, the highest earnings credit rate and the highest interest earnings rate. All the rates offered by UCB are set for the full five year term on the contract. UCB has served as the College s banking institution for the past thirteen years and has always provided excellent service to the College. MOTION: Move to approve United Community Bank as Lincoln Land Community College s main depository bank for the next five fiscal years (FY FY 2019). Vertrees/Longhta/Patarozzi/Aherin

3 RESOLUTION Board of Trustees, Community College District No. 526, Counties of Bond, Cass, Christian, DeWitt, Fayette, Greene, Logan, Macon, Macoupin, Mason, Menard, Montgomery, Morgan, Sangamon, Scott and State of Illinois. WHEREAS, United Community Bank is qualified by state statue to serve as Lincoln Land Community College s main depository, and WHEREAS, United Community Bank was judged to best meet the qualifications and specifications set forth in Lincoln Land Community College s Request for Proposals FY NOW, THEREFORE BE IT RESOLVED, that United Community Bank be, and is hereby designated a depository of Lincoln Land Community College and that funds so deposited may be withdrawn upon a check, draft, note or order of the District from July 1, 2014 through June 30, BE IT FURTHER RESOLVED, that all checks, drafts, notes or orders drawn against Lincoln Land Community College accounts be signed by one of the following individuals whose signatures shall be duly certified to such Bank, and that no checks, drafts, notes or orders drawn against such Bank shall be valid unless so signed: Account Signatory Title Stephen S. Haury Treasurer LLCC General Fund LLCC Federal Financial Aid Program or in special circumstances To Be Determined Stephen S. Haury or in special circumstances To Be Determined Vice President, Administrative Services Treasurer Vice President, Administrative Services Vertrees/Longhta/Patarozzi/Aherin

4 LLCC Payroll LLCC Employee Benefit Fund Stephen S. Haury or in special circumstances To Be Determined Stephen S. Haury or in special circumstances To Be Determined Treasurer Vice President, Administrative Services Treasurer Vice President, Administrative Services BE IT FURTHER RESOLVED, that such Bank is hereby authorized and directed to honor and pay any checks, drafts, notes or orders so drawn, whether such checks, drafts, notes or orders be payable to the order of any such person signing said checks, drafts, notes or orders, or any of such persons in their individual capacities or not, and whether such checks, drafts, notes or orders are deposited to the individual credit of any of the other officers or not. This resolution shall continue in force and such Bank may consider the facts concerning the holders of said officers, respectively, and their signatures to be continued as set forth in the certificate of the Secretary, accompanying a copy of this resolution when delivered to such Bank or in any similar subsequent certificate, until written notice to the contrary is duly served on such bank. In Witness Whereof, I have hereunto affixed my name as Lincoln Land Community College Board of Trustees Secretary this 23 th day of April (Jerry Wesley, Secretary) (Justin Reichert, Chair) Vertrees/Longhta/Patarozzi/Aherin

5 Vertrees/Longhta/Patarozzi/Aherin

6 Banking Comparison Estimated Annual Cost Analysis - RFP# BANK OF SPRINGFIELD ILLINOIS NATIONAL BANK TOWN & COUNTRY BANK UNITED COMMUNITY BANK SERVICES ESTIMATED ANNNUAL VOLUME 2 SWEEP ACCOUNT NA N/C N/C N/C N/C 4 INTEREST BEARING CHECKING ACCTS NA $ N/C $24, N/C ACCOUNT ANALYSIS MAINTENANCE 1 per month per account, total 48 N/C $ $ * $ ACCOUNT MAINTENANCE Currently included in account analysis N/C N/C N/C N/C ACH CREDITS (Merchant Services, Property taxes, etc.) 1649 $ $ $82.45 * $82.45 ACH DEBITS (includes PR) $3, $1, $1, * $1, ACH DEBITS (PR deductions, etc) 234 $35.10 $42.12 $11.70 * $11.70 ACH MAINTENANCE 1 per month N/C $ N/C N/C ACH PR DIRECT DEPOSITS CREDITS 1662 $ $ $83.10 * $83.10 ATM MACHINE 2296 N/C N/C $9, N/C CASH MANAGEMENT 4 users $ $ $ * $ CD-ROM 12 N/C $ $ N/C CHECK IMAGING SENT WITH STATEMENT 4 STATEMENTS PER MONTH N/C N/C $ * N/C CLEARED CHECKS FILE (general, PR, EBF in excel and CSV format) 1 per month per account, total 36 N/C N/C $ * $ COURIER SERVICES DAILY N/C $6, $4, $1, DEBIT MEMOS 5 N/C $0.90 $2.25 * $0.35 DEPOSIT ITEMS - Foreign 9084 $ $ $ * $ DEPOSIT ITEMS- Onus 1144 $68.64 $91.52 $ * $80.08 DEPOSIT SLIPS FOR 2 ACCTS $40.00 N/C N/C N/C DEPOSITS 2 DEPOSITS DAILY $87.60 $ $96.00 * N/C

7 Banking Comparison Estimated Annual Cost Analysis - RFP# BANK OF SPRINGFIELD ILLINOIS NATIONAL BANK TOWN & COUNTRY BANK UNITED COMMUNITY BANK SERVICES ESTIMATED ANNNUAL VOLUME EARNINGS CREDIT FEE NA N/C N/C N/C $0.01 EMPLOYEE BENEFITS CHECKS (written) 6200 $ N/C $ * $ ENDORSEMENT STAMPS (14 GENERAL, 1 EBF) 15 $ N/C N/C N/C FOREIGN CHECK COLLECTIONS - Onus 3 $0.18 $22.50 $0.30 * $75.00 FOREIGN CHECK COLLECTIONS - out of banks district 3 $0.29 $60.00 $0.30 * $75.00 GENERAL FUND CHECKS (written) $2, $2, $2, * $1, INCOMING WIRES (includes FA) 18 $ $ $ N/C INTERNATIONAL WIRES 2 $ $50.00 $ N/C INVESTMENT SWEEP DAILY N/C N/C See Proposal/CDARS recommendation N/C NIGHT DEPOSIT BAGS (large) 7 $ N/C $ N/C NIGHT DEPOSIT BAGS (small) 3 $36.00 N/C $75.00 N/C OUTGOING WIRES 4 $88.00 $52.00 $40.00 $28.00 OVERDRAFT 0 $0.00 $0.00 $0.00 $0.00 PAYROLL CHECKS (written) 3119 $ $ $ * $ REMOTE DEPOSIT CAPTURE TERMINALS 3 $75.00 N/C $1, N/C RESERVE REQUIREMENT NA $10,000 per account 10% 10% 10% RETURN ITEM PROCESSING 30 $ $ $ * $60.00 STANDARD CHECKS FOR EMPLOYEE BENEFIT FUND 100 $75.00 N/C $15.00 * N/C STANDARD DEPOSIT SLIPS FOR EMPLOYEE BENEFIT FUND 75 $18.00 N/C $15.00 * N/C

8 Banking Comparison Estimated Annual Cost Analysis - RFP# BANK OF SPRINGFIELD ILLINOIS NATIONAL BANK TOWN & COUNTRY BANK UNITED COMMUNITY BANK ESTIMATED ANNNUAL VOLUME SERVICES STANDARD DEPOSIT SLIPS FOR GENERAL FUND 1000 $40.00 N/C $ * N/C STOP PAYS 55 $1, $1, $ $ SWEEP PROCESSING ACCOUNTS 2 N/C N/C See Proposal/CDARS recommendation $ TRANSFERS BY CASH MANAGEMENT 50 N/C N/C $10.00 N/C TRANSFERS BY TELEPHONE 5 N/C N/C $25.00 N/C SERVICE CHARGE GRAND TOTAL $12, $14, $24, $7, *Town & Country Fees that will be analyzed and that may be waived based on the balances that the earnings credit rate is applied to. N/C = NO CHARGE BANK OF SPRINGFIELD ILLINOIS NATIONAL BANK TOWN & COUNTRY BANK UNITED COMMUNITY BANK EARNINGS CREDIT RATE No earnings credit but will apply an annual $10,000 credit towards fees 0.25% on all balances including the reserve amount 0.25% on non-interest bearing balances ($6.1 Million) for one year then will be re-evaluated 0.45% 0.75% 0.15% on balances after reserves and above $6.1M (Fixed for 1 year and then re-evaluated) 0.09% on balances after reserves 0.75% on balances after reserves INTEREST RATE INTEREST EARNED $23, $12, $7, $63,097.35